Product Life Cycle Accounting and Reporting Standard GHG Protocol Team Pankaj Bhatia, World Resources Institute Cynthia Cummis, World Resources Institute Andrea Brown, World Business Council for Sustainable Development Laura Draucker, World Resources Institute David Rich, World Resources Institute Holly Lahd, World Resources Institute Steering Committee Gerald Rebitzer, Amcor Ltd Nigel Topping, Frances Way, Carbon Disclosure Project (CDP) Graham Sinden, The Carbon Trust H Scott Matthews, Carnegie Mellon University Luc Larmuseau, DNV Climate Change Services David A Russell, Rob Rouse, The Dow Chemical Company Jiang Kejun, Energy Research Institute, China’s National Development and Reform Commission Andrew Hutson, Environmental Defense Fund Simon Aumônier, Environmental Resources Management Ugo Pretato, Kirana Chomkhamsri, European Commission Joint Research Centre Steven Meyers, General Electric Sergio Galeano, Georgia Pacific, ISO TC207 U.S Technical Advisory Group Gregory A Norris, Harvard University, New Earth, University of Arkansas Klaus Radunsky, ISO 14067 Working Group Convener Atsushi Inaba, Kogakuin University Alison Watson, New Zealand Ministry of Agriculture and Forestry Susan Cosper, Nick Shufro, PricewaterhouseCoopers LLP Rasmus Priess, THEMA1 GmbH, Product Carbon Footprint World Forum Wanda Callahan, Shell James A Fava, UNEP SETAC Life Cycle Initiative, Five Winds International Matthias Finkbeiner, UNEP SETAC Life Cycle Initiative, Technische Universität Berlin Henry King, Unilever Susan Wickwire, John Sottong, United States Environmental Protection Agency Maureen Nowak, United Kingdom Department of Environment, Food, and Rural Affairs James Stanway, Miranda Ballentine, Walmart Stores Inc Table of Contents CHAPTERS guidance Introduction 02 guidance Defining Business Goals 08 requirements guidance Summary of Steps and Requirements 12 requirements guidance Principles of Product Life Cycle GHG Accounting and Reporting 18 requirements guidance Fundamentals of Product Life Cycle GHG Accounting 20 requirements guidance Establishing the Scope of a Product Inventory 26 requirements guidance Boundary Setting 32 requirements guidance Collecting Data and Assessing Data Quality 46 requirements guidance Allocation 60 requirements guidance 10 Assessing Uncertainty 78 requirements guidance 11 Calculating Inventory Results 84 requirements guidance 12 Assurance 92 requirements guidance 13 Reporting 100 requirements guidance 14 Setting Reduction Targets and Tracking Inventory Changes 108 APPENDICES A Guidance on Product Comparison 115 B Land-Use Change Impacts 117 C Data Management Plan 126 Abbreviations 132 Glossary 133 References 139 Recognitions 140 [01] 01 Introduction g u i d a n c e E missions of the anthropogenic greenhouse gases (GHG) that drive climate change and its impacts around the world are growing According to climate scientists, global carbon dioxide emissions must be cut by as much as 85 percent below 2000 levels by 2050 to limit global mean temperature increase to degrees Celsius above pre-industrial levels.1 Temperature rise above this level will produce increasingly unpredictable and dangerous impacts for people and ecosystems As a result, the need to accelerate efforts to reduce anthropogenic GHG emissions is increasingly urgent Existing government policies will not sufficiently solve the problem Leadership and innovation from business is vital to making progress Corporate action in this arena also makes good business sense By addressing GHG emissions, companies can identify opportunities to bolster their bottom line, reduce risk, and discover competitive advantages As impacts from climate change become more frequent and prominent, governments are expected to set new policies and provide additional market-based incentives to drive significant reductions in emissions These new policy and market drivers will direct economic growth on a lowcarbon trajectory Businesses need to start planning for this transition now as they make decisions that will lock in their investments for years to come An effective corporate climate change strategy requires a detailed understanding of a company’s GHG impact A corporate GHG inventory is the tool to provide such an understanding It allows companies to take into account their emissions-related risks and opportunities and focus company efforts on their greatest GHG impacts Until recently, companies have focused their attention on emissions from their own operations But increasingly companies understand the need to also account for GHG emissions along their value chains and product portfolios to comprehensively manage GHGrelated risks and opportunities Through the development of the GHG Protocol Product Standard, the GHG Protocol has responded to the demand for an internationally accepted method to enable GHG management of companies’ goods and services Following the release of this standard, the GHG Protocol and its partners will proactively work [03] g u i d a n c e with industry groups and governments to promote its widespread use – along with the entire suite of GHG Protocol standards and tools – to enable more effective GHG management worldwide 1.1 The Greenhouse Gas Protocol The Greenhouse Gas (GHG) Protocol is a multistakeholder partnership of businesses, non-governmental organizations (NGOs), governments, and others convened by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) Launched in 1998, the mission of the GHG Protocol is to develop internationally accepted greenhouse gas (GHG) accounting and reporting standards and tools, and to promote their adoption in order to achieve a low emissions economy worldwide The GHG Protocol follows a broad, inclusive, consensusbased multi-stakeholder process to develop these standards with balanced participation from businesses, government agencies, non-governmental organizations, and academic institutions from around the world The standards include detailed guidance to assist users with implementation and are freely available on the GHG Protocol website (www.ghgprotocol.org) [04] Product Life Cycle Accounting and Reporting Standard The GHG Protocol has produced the following separate, but complementary standards, protocols, and guidelines: •• GHG Protocol Corporate Accounting and Reporting •• •• •• •• Standard (2004): A standardized methodology for companies to quantify and report their corporate GHG emissions Also referred to as the Corporate Standard GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard (2011): A standardized methodology for companies to quantify and report their corporate value chain (scope 3) GHG emissions, to be used in conjunction with the Corporate Standard Also referred to as the Scope Standard GHG Protocol for Project Accounting (2005): A guide for quantifying reductions from GHG-mitigation projects Also referred to as the Project Protocol GHG Protocol for the U.S Public Sector (2010): A step-by-step approach to measuring and reporting emissions from public sector organizations, complementary to the Corporate Standard GHG Protocol Guidelines for Quantifying GHG Reductions from Grid-Connected Electricity Projects (2007): A guide for quantifying reductions in emissions that either generate or reduce the consumption of electricity transmitted over power grids, to be used in conjunction with the Project Protocol •• GHG Protocol Land Use, Land-Use Change, and Forestry Guidance for GHG Project Accounting (2006): A guide to quantify and report reductions from land use, land-use change, and forestry, to be used in conjunction with the Project Protocol •• Measuring to Manage: A Guide to Designing GHG Accounting and Reporting Programs (2007): A guide for program developers on designing and implementing effective GHG programs based on accepted standards and methodologies 1.2 Purpose of the GHG Protocol Product Life Cycle Accounting and Reporting Standard The GHG Protocol Product Life Cycle Accounting and Reporting Standard (referred to as the Product Standard) provides requirements and guidance for companies and other organizations to quantify and publicly report an inventory of GHG emissions and removals2 associated with a specific product The primary goal of this standard is to provide a general framework for companies to make informed choices to reduce greenhouse gas emissions from the products (goods or services) they design, manufacture, sell, purchase, or use In the context of this standard, public reporting refers to product GHG-related information reported publicly in accordance with the requirements specified in the standard As awareness about climate change increases and concerns grow, investors are demanding more transparency, and consumers are seeking greater clarity and environmental accountability Companies are increasingly receiving requests from stakeholders to measure and disclose their corporate GHG inventories, and these requests often include a company’s products and supply chain emissions Companies must be able to understand and manage their product-related GHG risks if they are to ensure long-term success in a competitive business environment and be prepared for any future product-related programs and policies This standard focuses on emissions and removals generated during a product’s life cycle and does not address avoided emissions or actions taken to mitigate released emissions This standard is also not designed to be used for quantifying GHG reductions from offsets or claims of carbon neutrality Ultimately, this is more than a technical accounting standard It is intended to be tailored to business realities and to serve multiple business objectives Companies may find most value in implementing the standard using a phased approach, with a focus on improving the quality of the GHG inventory over time 1.3 How this standard was developed In 2008, WRI and WBCSD launched the three-year process to develop the Product Standard A 25 member Steering Committee of experts provided strategic direction throughout the process The first draft of the Product Standard was developed in 2009 by Technical Working Groups consisting of 112 members representing diverse industries, government agencies, academia, and nonprofit organizations from around the world In 2010, 38 companies from a variety of industry sectors “road tested” the first draft and provided feedback on its practicality and usability, which informed a second draft Members of a Stakeholder Advisory Group (consisting of more than 1,600 participants) provided feedback on both drafts of the standard 1.4 Who should use this standard This standard is designed for companies and organizations3 of all sizes in all economic sectors and in all countries Companies seeking a better understanding of the GHG inventory of products they design, manufacture, sell, purchase, or use can benefit from the use of this standard Interested users of the standard within companies could include staff from product design, procurement, research and development, marketing, energy, environment, logistics, and corporate sustainability departments Policy makers and GHG programs may also be interested in incorporating the standard into their policy or program design [05] g u i d a n c e CHAPTER 01 Introduction g u i d a n c e 1.5 Use of the Product Standard for product comparison The Product Standard is intended to support performance tracking of a product’s GHG inventory and emissions reductions over time Additional prescriptiveness on the accounting methodology, such as allocation choices and data sources, are needed for product labeling, performance claims, consumer and business decision making based on comparison of two or more products, and other types of product comparison based on GHG impacts See section 5.3.2 and Appendix A for more guidance on additional specifications needed for comparison Claims regarding the overall environmental superiority or equivalence of one product versus a competing product, referred to in ISO 14044 as comparative assertions, are not supported by the Product Standard 1.6 Relationship to the Corporate and Scope Standards The GHG Protocol Scope Standard and GHG Protocol Product Standard both take a value chain or life cycle approach to GHG accounting and were developed simultaneously The Scope Standard builds on the GHG Protocol Corporate Standard and accounts for value chain emissions at the corporate level, while the Product Standard accounts for life cycle emissions at the individual product level Together, the three standards provide a comprehensive approach to value chain GHG measurement and management The reporting company’s business goals should drive the use of a particular GHG Protocol accounting standard The Scope Standard enables a company to identify the greatest GHG reduction opportunities across the entire corporate value chain, while the Product Standard enables a company to target individual products with the greatest potential for reductions The Scope Standard helps a company identify GHG reduction opportunities, track performance, and engage suppliers at a corporate level, while the Product Standard helps a company meet the same objectives at a product level [06] Product Life Cycle Accounting and Reporting Standard Common data is used to develop scope inventories and product inventories, including data collected from suppliers and other companies in the value chain Since there can be overlap in data collection, companies may find added business value and efficiencies in developing scope and product inventories in parallel The GHG Protocol Scope and Product Standards both take a value chain or life cycle approach to GHG accounting While each standard can be implemented independently, both standards are mutually supportive Integrated use might include: •• Applying the Corporate Standard and Scope Standard (to determine the company’s total scope 1, scope 2, and scope emissions) , using the results to identify products with the most significant emissions, then using the Product Standard to identify mitigation opportunities in the selected products’ life cycles •• Using product-level GHG data based on the Product Standard as a source of data to calculate scope emissions associated with selected product types •• Applying the Corporate Standard, Scope Standard and the Product Standard and using the results to inform GHG-reduction strategies at both the product and corporate levels The sum of the life cycle emissions of each of a company’s products, combined with additional scope categories4 (e.g., employee commuting, business travel, and investments), should approximate the company’s total corporate GHG emissions (i.e., scope + scope + scope 3) In practice, companies are not expected or required to calculate life cycle inventories for individual products when calculating scope emissions Figure 1.1 illustrates the relationship between the Corporate Standard, Product Standard, and Scope Standard In this simplified example, a company manufactures one product (Product A) The example shows how scopes of emissions at the corporate level correspond to life cycle stages at the product level CHAPTER 01 Introduction upstream scope emissions product A material acquisition & pre-processing scope and emissions production downstream scope emissions distribution & storage use end-of-life scope and emissions required by the Corporate Standard scope emissions required by the Scope Standard product life cycle emissions required by the Product Standard 1.7 Limitations of product GHG inventories Endnotes The Product Standard accounts for the GHG emissions and removals that occur during a product’s life cycle A product assessment limited to only GHGs has the benefit of simplifying the analysis and producing results that can be clearly communicated to stakeholders The limitation of a GHG-only inventory is that potential trade-offs or cobenefits between environmental impacts can be missed Therefore, the results of a GHG-only inventory should not be used to communicate the overall environmental performance of a product Non-GHG environmental impacts that occur during the life cycle of a product should also be considered when making decisions to reduce GHG emissions based on the inventory results Examples of potentially significant non-GHG impacts for some products include ecosystem degradation, resource depletion, ozone depletion, and negative human health impacts IPCC, Summary for Policymakers (Table SPM.5: Characteristics of post-TAR stabilization scenarios), in Climate Change 2007: Mitigation Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, ed B Metz, O.R Davidson, P.R Bosch, R Dave, L.A Meyer (Cambridge, United Kingdom and New York, NY, USA: Cambridge University Press, 2007) In this standard, both emissions to the atmosphere and removals from the atmosphere are accounted for in order to calculate the total GHG inventory of a product Removals of CO2 generally occur during photosynthesis The term company is used throughout the standard to represent a company or organization that may use the standard A scope category is one of 15 types of scope emissions organized by activities that occur upstream and downstream from a company’s ownership or control Moreover, while this standard focuses solely on GHG emissions and removals, the accounting requirements and guidance provided can be used to collect data for other environmental impacts Companies wishing to include non-GHG impacts along with their GHG inventory can so using the same steps and methodologies provided in this standard [07] g u i d a n c e Figure [1.1] T he relationship between the Corporate, Scope 3, and Product Standards for a company manufacturing product A 02 Defining Business Goals Abbreviations BSI QA/QC Quality Assurance/Quality Control CH4 Methane R&D Research and Development CO2 Carbon Dioxide CO2e Carbon Dioxide Equivalent SETAC Society of Environmental Toxicology and Chemistry British Standards Institution DEFRA UK Department of Environment Food and Rural Affairs SF6 Sulfur Hexafluoride SKU Stock-Keeping Unit United Nations Environment Programme EEIO Environmentally Extended Input-Output UNEP EPD Environmental Product Declaration FAO Food and Agriculture Organization UNFCCC United Nations Framework Convention on Climate Change GHG Greenhouse Gas GIS Geographic Information System GTP Global Temperate Potential WBCSD World Business Council for Sustainable Development GWP Global Warming Potential WRI HFCs Hydrofluorocarbons ILCD International Reference Life Cycle Data IPCC Intergovernmental Panel on Climate Change ISO International Organization for Standardization kg Kilogram LCA Life Cycle Assessment LCI Life Cycle Inventory MW Megawatt NAICS North American Industry Classification System NGO Non-Governmental Organization N2O Nitrous Oxide O&M Operation and Maintenance PAS 2050 Publicly Available Specification 2050 PCR Product Category Rule PET Polyethylene Terephthalate PFCs Perfluorocarbons [132] Product Life Cycle Accounting and Reporting Standard UNSPSC United Nations Standard Products and Services Code World Resources Institute Glossary Allocation The partitioning of emissions and removals from a common process between the studied product’s life cycle and the life cycle of the co-product(s).1 Assurance The level of confidence that the inventory results and report are complete, accurate, consistent, transparent, relevant, and without material misstatements Assurer A competent individual or body who conducts the assurance process, whether internally within the company or externally Attributable processes Service, material, and energy flows that become the product, make the product, and carry the product through its life cycle Attributional approach An approach to LCA where GHG emissions and removals are attributed to the unit of analysis of the studied product by linking together attributable processes along its life cycle.2 Audit trail Well organized and transparent historical records documenting how the GHG inventory was compiled Biogenic Produced by living organisms or biological processes, but not fossilized or from fossil sources.3 Carbon stock The total amount of carbon stored on a plot of land at any given time in one or more of the following carbon pools: biomass (above and below ground), dead organic matter (dead wood and litter), and soil organic matter.4 A change in carbon stock can refer to additional carbon storage within a pool, the removal of CO2 from the atmosphere, or the emission of CO2 to the atmosphere Common process One process that has multiple valuable products as inputs and/or outputs including the studied product and co-product(s) Comparative assertion An environmental claim regarding the superiority or equivalence of one product versus a competing product that performs the same function.5 Consequential approach An approach to LCA where processes are included in the life cycle boundary to the extent that they are expected to change as a consequence of a change in demand for the unit of analysis.6 Consumer An individual that purchases and uses a product Co-product A product exiting the common process that has value as an input into another product’s life cycle [133] Cradle-to-gate inventory A partial life cycle of an intermediate product, from material acquisition through to when the product leaves the reporting company’s gate (e.g., immediately following the product’s production) Cradle-to-grave inventory Removals and emissions of a studied product from material acquisition through to end-of-life Customer An entity that purchases, rents, or uses the products of another entity (i.e., a supplier) Direct emissions data Emissions released from a process (or removals absorbed from the atmosphere) determined through direct monitoring, stoichiometry, mass balances, or similar methods Downstream GHG emissions or removals associated with processes that occur in the life cycle of a product subsequent to the processes owned or controlled by the reporting company.7 Emissions factor GHG emissions per unit of activity data End-of-life stage A life cycle stage that begins when the used product is discarded by the consumer and ends when the product is returned to nature (e.g., incinerated) or allocated to another product’s life cycle Environmentally extended Emission factors developed through the analysis of economic flows and used to estimate input-output (EEIO) GHG emissions for a given industry or product category.8 Extrapolated data Data specific to another process or product that has been adapted or customized to resemble more closely the conditions of the given process in the studied product’s life cycle Final product Goods and services that are ultimately consumed by the end user rather than used in the production of another good or service Financial activity data Monetary measures of a process that result in GHG emissions or removals First party (self or internal) assurance Assurance performed by a person(s) from within the reporting company but independent of the GHG inventory determination process Function The service provided by the studied product Functional unit The quantified performance of the studied product.9 Gate-to-gate The emissions and removals attributable to a studied product while it is under the ownership or control of the reporting company GHG impact The results calculated when GHG emissions and removals are multiplied by the relevant global warming potential (GWP) [134] Product Life Cycle Accounting and Reporting Standard Glossary Global warming potential A factor used to calculate the cumulative radiative forcing impact of multiple specific (GWP) GHGs in a comparable way.10 Indirect land-use change When the demand for a specific land use induces a carbon stock change on other lands Insignificance threshold The threshold below which a process, input, or output can be considered insignificant to the studied product’s life cycle inventory Intermediate products Goods that are used as inputs to the production of other goods or services Inventory report The full reporting requirements, plus any optional information, reported publicly in conformance with the Product Standard Inventory results The GHG impact of the studied product per unit of analysis Land use categories Forest land, cropland, grassland, wetlands, settlements and other lands.11 Land-use change Occurs when the demand for a specific land use results in a change in carbon stocks on that land, due to either a conversion from one land-use category to another or a conversion within a land-use category Land-use change impacts Emissions and removals due to land-use change Level of assurance The degree of confidence stakeholders can have over the information in the inventory report Life cycle Consecutive and interlinked stages of a product system, from raw material acquisition or generation of natural resources to end-of-life Life cycle assessment Compilation and evaluation of inputs, outputs and potential environmental impacts of a product system throughout its lifecycle.12 Life cycle stage A useful categorization of the interconnected steps in a product’s life cycle for the purposes of organizing processes, data collection, and inventory results Material acquisition and pre-processing stage A life cycle stage that begins when resources are extracted from nature and ends when the product components enter the gate of the studied product’s production facility Material misstatement Individual or aggregate errors, omissions, and misrepresentations that significantly impact the GHG inventory results and could influence a user’s decisions Non-attributable processes Processes and services, materials and energy flows are not directly connected to the studied product because they not become the product, make the product, or directly carry the product through its life cycle [135] Primary data Data from specific processes in the studied product’s life cycle Process activity data Physical measures of a process that result in GHG emissions or removals Product Any good or service Product category Group of products that can fulfill equivalent functions.13 Product distribution and storage stage A life cycle stage that begins when the finished studied product leaves the gate of the production facility and ends when the consumer takes possession of the product Product GHG inventory Compilation and evaluation of the inputs, outputs, and the potential GHG impacts of a product system throughout its life cycle Product rule A document containing additional specifications needed to enable comparisons or declarations about a product or product category Production stage A life cycle stage that begins when the product components enter the production site for the studied product and ends when the finished studied product leaves the production gate Proxy data Data from a similar activity that is used as a stand-in for the given activity Proxy data can be extrapolated, scaled up, or customized to represent the given activity Recycling processes Processes that occur as a result of a product or material being reused or recycled as a material input into another product’s life cycle Reference flow The amount of studied product needed to fulfill the function defined in the unit of analysis.14 Removal The sequestration or absorption of GHG emissions from the atmosphere, which most typically occurs when CO2 is absorbed by biogenic materials during photosynthesis Reporting company The company performing the product GHG inventory in conformance with the Product Standard Same inherent properties (recycling) When a recycled material has maintained its properties (e.g., chemical, physical) such that it can be used as a direct replacement of virgin material Scope inventory A reporting organization’s indirect emissions other than those covered in scope A company’s scope inventory includes the upstream and downstream emissions of the reporting company Secondary data Process data that are not from specific processes in the studied product’s life cycle Sector guidance A document or tool that provides guidance for performing a product GHG inventory within a given sector [136] Product Life Cycle Accounting and Reporting Standard Glossary Service life The amount of time needed for a product to fulfill the function defined in the unit of analysis Studied product The product for which the GHG inventory is performed Third party (external) assurance Assurance performed by a person(s) from an organization independent of the product GHG inventory determination process Time period The period of time when attributable processes occur during the studied product’s life cycle, from when materials are extracted from nature until they are returned to nature at the end-of-life (e.g., incinerated) or leave the studied product’s life cycle (e.g., recycled) Qualitative uncertainty A general and imprecise term which refers to the lack of certainty in data and methodology choices, such as the application of non-representative factors or methods, incomplete data on sources and sinks, lack of transparency, etc Quantitative uncertainty Measurement that characterizes the dispersion of values that could reasonably be attributed to a parameter (adapted from ISO 1995).15 Unit of analysis The basis on which the inventory results are calculated; the unit of analysis is defined as the functional unit for final products and the reference flow for intermediate products Upstream GHG emissions or removals associated with processes that occur in the life cycle of a product prior to the processes owned or controlled by the reporting company.16 Use stage A life cycle stage that begins when the consumer takes possession of the product and ends when the used product is discarded for transport to a waste treatment location or recycled into another product’s life cycle Waste An output of a process that has no market value [137] Endnotes Adapted from ISO 14044:2006 Adapted from UNEP and SETAC, Global Guidance Principles for Life Cycle Assessment Databases 2011 Adapted from British Standards Institution et al PAS 2050:2008: Specification for the assessment of life cycle greenhouse gas emissions of goods and services IPCC, 2006 IPCC Guidelines for National GHG Inventories, Volume 4: Agriculture, Forestry, and Other Land Use International Organization of Standardization, ISO 14044:2006, Life Cycle Assessment: Requirements and Guidelines Adapted from UNEP and SETAC, Global Guidance Principles for Life Cycle Assessment Databases 2011 Adapted from British Standards Institution et al PAS 2050:2008: Specification for the assessment of life cycle greenhouse gas emissions of goods and services Adapted from British Standards Institution et al PAS 2050:2008: Specification for the assessment of life cycle greenhouse gas emissions of goods and services Adapted from ISO 14044:2006 10 Adapted from IPCC, IPCC Fourth Assessment Report, 2007 11 IPCC, 2006, Guidelines for National GHG Inventories, Volume 4: Agriculture, Forestry, and Other Land Use 12 International Organization of Standardization, ISO 14044:2006, Life Cycle Assessment: Requirements and Guidelines 13 International Organization for Standardization, ISO 14025:2006, Environmental labels and declarations-Type III environmental declarations Principles and procedures 14 Adapted from ISO 14044:2006 15 International Organization for Standardization, 1995, ISO/IEC Guide 98:1995 Guide to the expression of uncertainty in measurement (GUM) 16 Adapted from British Standards Institution et al PAS 2050:2008: Specification for the assessment of life cycle greenhouse gas emissions of goods and services [138] Product Life Cycle Accounting and Reporting Standard References Atherton, John “Declaration by the Metals Industry on Recycling Principles.” International Journal of Life Cycle Assessment, 12 no (2007):59-60 International Organization for Standardization ISO 14044:2006, Life Cycle Assessment: Requirements and Guidelines Geneva British Standards Institution et al PAS 2050:2008: Specification for the assessment of life cycle greenhouse gas emissions of goods and services International Organization for Standardization ISO 14049:2000, Environmental management — Life cycle assessment — Examples of application of ISO 14041 to goal and scope definition and inventory analysis Geneva European Commission - Joint Research Centre - Institute for Environment and Sustainability “International Reference Life Cycle Data System (ILCD) Handbook - General guide for Life Cycle Assessment - Detailed guidance.” First edition, March 2010 Luxembourg: Publications Office of the European Union, 2010 FAO FAOSTAT Available from http://faostat.fao.org/ site/567/default.aspx#ancor, 2011 Greenhouse Gas Protocol Corporate Accounting and Reporting Standard 2004 International Organization for Standardization ISO 14064-3: 2006, Greenhouse gases - Part 3: Specification with guidance for the validation and verification of greenhouse gas assertions Geneva International Organization for Standardization ISO/IEC Guide 98:1995, Guide to the expression of uncertainty in measurement (GUM) Geneva IPCC Fourth Assessment Report 2007 Huijbregts, Mark A J “Application of uncertainty and variability in LCA Part I: A General Framework for the Analysis of Uncertainty and Variability in Life Cycle Assessment.”International Journal of Life Cycle Assessment, no (1998):273 – 280 IPCC Summary for Policymakers In Climate Change 2007: Mitigation Contribution of Working Group III to the Fourth Assessment Report of the Intergovernmental Panel on Climate Change, ed B Metz, O.R Davidson, P.R Bosch, R Dave, L.A Meyer Cambridge, United Kingdom and New York, NY, USA: Cambridge University Press, 2007 International Working Group Life Cycle Inventory Analysis: Enhanced Methods and Applications for the Products of the Forest Industry Washington DC: American Forest and Paper Association, 1996 IPCC 2006 IPCC Guidelines for National Greenhouse Gas Inventories, vol.4, Agriculture, Forestry and Other Land Use, eds H.S Eggleston, L Buendia, K Miwa, T Ngara and K Tanabe (Hayama, Japan: IGES,2006) International Organization for Standardization ISO 14021:1999, Environmental labels and declarations -Self-declared environmental claims (Type II environmental labeling) Geneva UNEP and SETAC Global Guidance Principles for Life Cycle Assessment Databases 2011 International Organization for Standardization ISO 14024:1999, Environmental labels and declarations — Type I environmental labeling — Principles and procedures Geneva International Organization for Standardization ISO 14025:2006, Environmental labels and declarations — Type III environmental declarations — Principles and procedures Geneva Weidema, B.P and M.S Wesnaes Data quality management for life cycle inventories - an example of using data quality indicators Journal of Cleaner Production no 3-4 (1996): 167-174 World Resources Institute “EarthTrends: Environmental Information.” Available from http://earthtrends.wri.org Washington DC: World Resources Institute.2007 Zaks, D.P.M., C C Barford, N Ramankutty and J A Foley.”Producer and consumer responsibility for greenhouse gas emissions from agricultural production – a perspective from the Brazilian Amazon.”Environmental Research Letters (2009) [139] Recognitions Advisors Fabio Peyer, Amcor Ltd Jannie Bell, Dell Inc Björn Hannappel, Deutsche Post DHL Carina Alles, DuPont Lisa Grice, ENVIRON International Corporation Matthew Bateson, World Business Council for Sustainable Development Jennifer Morgan, World Resources Institute Janet Ranganathan, World Resources Institute Ranping Song, World Resources Institute Road Testing Companies 3M Acer AkzoNobel Alcoa Amcor Ltd Anvil Knitwear Baosteel Group Corporation BASF Belkin International, Inc Bloomberg LP BT plc Deutsche Post DHL Deutsche Telekom AG Diversey DuPont Ecolab, Inc Edelweiss GE Global Research GNP Company Herman Miller, Inc Italcementi Group Kunshan Tai Ying Paint Lenovo Levi Strauss & Co Mitsubishi Chemical Holdings Corporation New Belgium Brewing PepsiCo Procter & Gamble Quanta Shanghai Manufacturing City, Tech-Front (Shanghai) Computer Co Ltd Rogers Communications RSA Insurance Group plc Shanghai Zidan Printing Co., Ltd Shell Suzano Pulp & Paper Swire Beverages (Coca-Cola Bottling Partner) TAL Apparel Verso Paper Corp WorldAutoSteel Product Standard Technical Working Group Members Patrick Wood, AgRefresh Johan Widheden, AkzoNobel Cyrille de Labriolle, API-HK Deirdre Wilson, Applied Sustainability International, LLC Richard Sheane, Best Foot Forward Craig Simmons, Best Foot Forward and Footprinter Marcelo Valadares Galdos, Brazilian Bioethanol Science and Technology Laboratory Gabrielle Ginér, BT plc Glyn Stacey, BT Group plc [140] Product Life Cycle Accounting and Reporting Standard Connie Sasala, Cameron-Cole, LLC Pierre Boileau, Canadian Standards Association Steve Marsden, Carbon Step Change (Chair) Scott Kaufman, Carbon Trust Thomas Wiedmann, Centre for Sustainability Accounting Ltd Laura Verduzco, Chevron Energy Technology Company Richard Mendis, Clear Standards J Renee Morin, ClearCarbon Steve Davis, The Climate Conservancy (Chair) Tashweka Anderson, Computacenter Recognitions Product Standard Technical Working Group Members (continued) Jannick H Schmidt, The Danish Centre for Environmental Assessment, Aalborg University Atsushi Inaba, Department of Environmental and Energy Chemistry, Kogakuin University Emelia Holdaway, Ecofys Yves Loerincik, Ecointesys - Life Cycle Systems Catarina Furtado, Ecoprogresso Lisa Brady, EMC Corporation Kathrin Winkler, EMC Corporation Brenna Zimmer, EMC Corporation Vivek Dhariwal, Emergent Ventures India Mary Stewart, Emergent Ventures India Liu Qiang, Energy Research Institute, China’s National Development and Reform Commission Lisa Grice, ENVIRON International Corporation Dave Covell, ENVIRON UK Ltd Ronjoy Rajkhowa, Ernst & Young Pere Fullana, Escola Superior de Comerc Internacional Niels Jungbluth, ESU-services Ltd Alex Loijos, FoodPrint Angela Fisher, GE Global Research William P Flanagan, GE Global Research Jacob Park, Green Mountain College Shannon Binns, Green Press Initiative Prasad Modak, Green Purchasing Network of India Shantanu Roy, Green Purchasing Network of India Tom Baumann, Greenhouse Gas Management Institute Michael Gillenwater, Greenhouse Gas Management Institute Pablo Päster, Hara Terrie K Boguski, Harmony Environmental, LLC Paul Shabajee, Hewlett-Packard Olle Blidholm, IKEA Group Xander van der Spree, IKEA Group Luis G Huertas, Independent Architect Angeline de Beaufort-Langeveld, Independent Consultant Scott Stewart, Intel Marlen Bertram, International Aluminium Institute Kurt Buxmann, International Aluminium Institute Georgios Sarantakos, International Union for Conservation of Nature Mankaa Nangah Rose, Italcementi Group David V Spitzley, Kimberly-Clark Corporation (Chair) Suzie Greenhalgh, Landcare Research NZ Ltd (Chair) Taylor Wilkinson, LMI (Chair) Paul Smith, LRQA Ltd Oliver Ferrari, MarionEco Edgar E Blanco, Massachusetts Institute of Technology Kiyoshi Matsuda, Mitsubishi Chemical Corporation Jeffrey Mittelstadt, National Council for Advanced Manufacturing Caroline Gaudreault, NCASI Reid Miner, NCASI Hans H Wegner, National Geographic Society Anthony D’Agostino, National University of Singapore Alison Watson, New Zealand Ministry of Agriculture and Forestry Jostein Soreide, Norsk Hydro Wilson Korol, Nortel Networks Tim Moore, Northwest Carbon Karen Oxenbøll, Novozymes A/S Christian Hochfeld, Öko Institut Dietlinde Quack, Öko Institut Philippe Letherisien, Orange Eloise Brauner, PE INTERNATIONAL Sabine Deimling, PE INTERNATIONAL Harald Florin, PE INTERNATIONAL Hannes Partl, PE INTERNATIONAL Julia Pflieger, PE INTERNATIONAL Michael Spielmann, PE INTERNATIONAL Liila Woods, PE INTERNATIONAL Haixiao Zhang, PE INTERNATIONAL Duncan Noble, PE INTERNATIONAL, Inc & Five Winds Strategic Consulting Robert ter Kuile, PepsiCo Stephanie Adda, PricewaterhouseCoopers, LLP Helen Slinger, PricewaterhouseCoopers, LLP Getachew Assefa, Royal Institute of Technology – Stockholm Jonas Dennler, SAP Jim Sullivan, SAP Kevin Ramm, SAP AG Andreas Vogel, SAP Labs Chris Librie, SC Johnson Valerie A Slomczewski, SC Johnson Lisa Brough, SGS Jan Minx, Stockholm Environment Institute [141] Product Standard Technical Working Group Members (continued) Evan Andrews, Sylvatica Pascal Lesage, Sylvatica/CIRAIG Wilhelm Wang, Transreg, LLC Henry King, Unilever Sarah Sim, Unilever Bhawan Singh, Université de Montréal David Guernsey, United Parcel Service John Kimball, United States Department of Energy Vince Camobreco, United States Environmental Protection Agency Verena Radulovic, United States Environmental Protection Agency Kathleen Vokes, United States Environmental Protection Agency Sarah Froman, United States Environmental Protection Agency Wayne Wnuck, United Technologies Corporation Sangwon Suh, University of California Santa Barbara Craig Liska, Verso Paper Jeffrey Rice, Walmart Stores, Inc Contributors Stefanie Giese-Bogdan, 3M Sam Lin, Acer Fiona van den Brink, AkzoNobel Marc Luijten, AkzoNobel Sara Tollin, AkzoNobel Johan Widheden, AkzoNobel Paola Kistler, Alcan Tony Christopher, Alcoa Casey Wagner, Alcoa Fabio Peyer, Amcor Ltd Gerald Rebitzer, Amcor Ltd Caterina A Conti, Anvil Knitwear Arturo Cepeda, Artequim Shuichiro Sugimoto, Asahi Glass Co., Ltd Hiroo Takahashi, Asahi Glass Co., Ltd Tao Liu, Baosteel Group Corporation Yinghao Liu, Baosteel Group Corporation Hongzhi Shi, Baosteel Group Corporation Giuliana Angonoa-Doehnert, BASF Nicola Paczkowski, BASF Anthony Edwards, Belkin International, Inc Gregory LeMay, Beverage Industry Environmental Roundtable Hans Blonk, Blonk Milieu Advies Lee Ballin, Bloomberg LP Gabrielle Ginér, BT plc Glyn Stacey, BT Group plc Ryan Schuchard, Business for Social Responsibility Annalisa Schilla, California Air Resources Board Ian Lipton, The Carbon Accounting Company James Leaton, Carbon Tracker Initiative [142] Product Life Cycle Accounting and Reporting Standard Patricia Ludewig, Caterpillar Claude Loréa, CEMBUREAU Thomas Wiedmann, Centre for Sustainability Accounting Ltd Meg Crawford, CERES Jianhua Chen, China National Institute of Standardization Liang Chen, China National Institute of Standardization Mei Liu, China National Institute of Standardization Corinne Reich-Weiser, Climate Earth Christopher Gleadle, The CMG Consultancy Christoph Meinrenken, Columbia University Tony Siantonas, dcarbon8 Ltd Steven Moore, Deloitte Touche Tohmatsu Limited Björn Hannappel, Deutsche Post DHL Klaus Hufschlag, Deutsche Post DHL Markus Igel, Deutsche Post DHL Mathis Lapenküpper, Deutsche Post DHL Patric Pütz, Deutsche Post DHL Stephan Schlabinski, Deutsche Post DHL Hans-Jürgen Gerhardy, Deutsche Telekom AG Reiner Lemke, Deutsche Telekom AG Michael Zalan, Deutsche Telekom AG Daniel A Daggett, Diversey Carina Alles, DuPont Dawn Rittenhouse, DuPont Susanne Veith, DuPont Bo Weidema, Ecoinvent Matt Molinaro, Ecolab, Inc Ali Rivers, Ecometrica Marc Zanter, Edelweiss Nigel Carter, En-Venture Lixiao Hu, Energy Systems International Recognitions Contributors (continued) Ines Sousa, ENXSUITE Camile Burel, European Bioindustry Association Jonathan Newton, Ford Motor Company William Flanagan, GE Global Research Angela Fisher, GE Global Research Paul Helgeson, GNP Company Juergen Ritzek, GreenBusinessConsulting Thaddeus Owen, Herman Miller, Inc Yoshiaki Ichikawa, Hitachi, Ltd Hemant Bundele, ibLaunch Energy, Inc Tim Higgs, Intel Ted Reichelt, Intel Silvana Paniagua Tufinio, Intelligence for Business Chris Bayliss, International Aluminium Institute Rose Nangah Mankaa, Italcementi Group Manuela Ojan, Italcementi Group Sunil Kumar, ITC Yoshikazu Kato, The Japan Gas Association Wenlin Wang , Kunshan Tai Ying Paint John Andrews, Landcare Research NZ Craig McCutcheon, Landcare Research NZ Barruch Ben-Zekry, Levi Strauss & Co Colleen Kohlsaat, Levi Strauss & Co Xun Gong, Lenovo William Guthrie, Lenovo Mads Stensen, Maersk Line Kara E.Reeve, Massachusetts Institute of Technology Kenji Shima, Mitsubishi Chemical Holdings Corporation Leah Fry, National Grid David B Goldstein, Natural Resources Defense Council Jenn Orgolini, New Belgium Brewing Claus Frier, Novozymes A/S Stefan Seum, Öko-Institut, Germany Jeff Stein, Open Data Registry Robert TerKuille, PepsiCo Eros Artuso, PricewaterhouseCoopers, LLP Christopher Ho, PricewaterhouseCoopers Hong Kong/China Annie Weisbrod, Procter & Gamble Diederik Schowanek, Procter & Gamble Environmental Stewardship Organization Aimee Ding, Quanta Shanghai Manufacturing City, TechFront (Shanghai) Computer Co Ltd Larry Li, Quanta Shanghai Manufacturing City, Tech-Front (Shanghai) Computer Co Ltd Josephine Przewodnik, RECARBON Deutschland GmbH Brian Au, RESET Carbon Hicham Elhalaby, Rogers Communications Paul Pritchard, RSA Insurance Group plc Alyssa Farrell, SAS Barbara Nebel, Scion Robin Li, SGS-CSTC Standards Technical Services Co., Ltd Danny Wong, SGS Hong Kong Limited Fei Han, Shanghai Zidan Printing Co., Ltd Yadi Shen, Shanghai Zidan Printing Co., Ltd Marieke Groenendaal, Shell Stephen Kinder, Shell Xavier Riera-Palou, Shell Zoltán Hajdu, Soltub, Ltd Mariana Carlini, Suzano Pulp & Paper Samuel Kwong, Swire Beverages (Coca Cola Bottling Partner) Thomas Yip, TAL Apparel Yutaka Yoshida, TOKYO GAS CO., LTD Javier Fajardo, USDA/FAS/OSTA Laurence Hamon, Veolia Environnement Research & Innovation Guillaume Arama, Veolia Water David Houdusse, Veolia Water Craig Liskai, Verso Paper Corp Lisbeth Dahllöf, Volvo Technology Edie Sonne Hall, Weyerhaeuser George Coates, WorldAutoSteel Antonia Gawel, World Business Council for Sustainable Development Bernhard Gruenauer, World Business Council for Sustainable Development Varun Vats, World Business Council for Sustainable Development Wee Kean Fong, World Resources Institute Taryn Fransen, World Resources Institute Lauren Gritzke, World Resources Institute Stacy Kotorac, World Resources Institute Eliot Metzger, World Resources Institute Michelle Perez, World Resources Institute Laura Pocknell, World Resources Institute Neelam Singh, World Resources Institute Clare Broadbent, World Steel Association [143] In-kind Road Testing Support The Carbon Trust China National Institute of Standardization DNV KPMG PE Consulting PRé Consultants PricewaterhouseCoopers, LLP SGS-CSTC Standards Technical Services Co., Ltd SGS Hong Kong Limited Consultants China National Institute of Standardization PricewaterhouseCoopers, LLP Quantis RESET Carbon WRI and WBCSD would like to thank the following organizations for their generous financial support: Alcoa Foundation, BP Foundation, Dell Inc., EMC Corporation, Intel Corporation, Kimberly Clark Corporation, PepsiCo, PricewaterhouseCoopers, LLP, Robertson Foundation, SC Johnson & Son, Inc., Siemens, United States Agency for International Development (USAID), United States Environmental Protection Agency (US EPA), United Technologies Corporation, UPS Foundation, and Walmart Foundation WBCSD, funded by its member companies, also provided direct financial support Copyright © World Resources Institute and World Business Council for Sustainable Development, September 2011 ISBN 978-1-56973-773-6 Printed in USA Printed on 70# Chorus Art Silk text and 80# cover (30% post consumer recycled) with soy-based inks [144] Product Life Cycle Accounting and Reporting Standard Design: Alston Taggart, Studio Red Design Cover: Futerra Sustainability Communications World Business Council for Sustainable Development (WBCSD) The WBCSD is a CEO-led, global coalition of some 200 companies advocating for progress on sustainable development Its mission is to be a catalyst for innovation and sustainable growth in a world where resources are increasingly limited The Council provides a platform for companies to share experiences and best practices on sustainable development issues and advocate for their implementation, working with governments, non-governmental and intergovernmental organizations The membership has annual revenues of USD trillion, spans more than 35 countries and represents 20 major industrial sectors The Council also benefits from a network of 60 national and regional business councils and partner organizations, a majority of which are based in developing countries World Resources Institute (WRI) The World Resources Institute is a global environmental think tank that goes beyond research to put ideas into action We work with governments, companies, and civil society to build solutions to urgent environmental challenges WRI’s transformative ideas protect the earth and promote development because sustainability is essential to meeting human needs and fulfilling human aspirations in the future WRI spurs progress by providing practical strategies for change and effective tools to implement them We measure our success in the form of new policies, products, and practices that shift the ways governments work, companies operate, and people act We operate globally because today’s problems know no boundaries We are avid communicators because people everywhere are inspired by ideas, empowered by knowledge, and moved to change by greater understanding We provide innovative paths to a sustainable planet through work that is accurate, fair, and independent WRI organizes its work around four key goals: •• People & Ecosystems: Reverse rapid degradation Disclaimer The GHG Protocol Product Life Cycle Accounting and Reporting Standard, is designed to promote best practice GHG accounting and reporting It has been developed through an inclusive multi-stakeholder process involving experts from businesses, nongovernmental organizations (NGOs), governments, and others convened by the World Resources Institute (WRI) and the World Business Council for Sustainable Development (WBCSD) While WBCSD and WRI encourage use of the Product Standard by all corporations and organizations, the preparation and publication of reports or program specifications based fully or partially on this standard is the full responsibility of those producing them Neither WBCSD and WRI, nor other individuals who contributed to this standard assume responsibility for any consequences or damages resulting directly or indirectly from its use in the preparation of reports, program specifications, or the use of reports based on the Product Standard of ecosystems and assure their capacity to provide humans with needed goods and services •• Governance: Empower people and strengthen institutions to foster environmentally sound and socially equitable decision-making •• Climate Protection: Protect the global climate system from further harm due to emissions of greenhouse gases and help humanity and the natural world adapt to unavoidable climate change •• Markets & Enterprise: Harness markets and enterprise to expand economic opportunity and protect the environment In all its policy research and work with institutions, WRI tries to build bridges between ideas and action, meshing the insights of scientific research, economic and institutional analyses, and practical experience with the need for open and participatory decision-making The Greenhouse Gas Protocol provides the foundation for sustainable climate strategies and more efficient, resilient and profitable organizations GHG Protocol standards are the most widely used accounting tools to measure, manage and report greenhouse gas emissions www.wri.org www.wbcsd.org www.ghgprotocol.org